MIRA INFORM REPORT
|
Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
SICHUAN
LOMON TITANIUM INDUSTRY CO., LTD. |
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Registered Office : |
Xinshi Industrial Development
Zone, Mianzhu City, Sichuan Province 618200
PR |
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Country : |
China |
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Financials (as on) : |
31.05.2012 |
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Date of Incorporation : |
21.02.2001 |
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Com. Reg. No.: |
510000000173951 |
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Legal Form : |
Shares Limited Company |
|
|
|
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Line of Business : |
Subject engaged in manufacturing and selling titanium
pigment |
|
|
|
|
No. of Employees : |
1,100 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES
:
Any query related to this report
can be made on e-mail: infodept@mirainform.com while quoting report
number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
|
Source : CIA |
COMPANY NAME &
ADDRESS
SICHUAN LOMON TITANIUM INDUSTRY
CO., LTD.
XINSHI INDUSTRIAL
DEVELOPMENT ZONE, MIANZHU CITY
SICHUAN
PROVINCE 618200 PR CHINA
TEL: 86
(0) 838-6506063
FAX: 86
(0) 838-6506053
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 21, 2001
REGISTRATION NO. : 510000000173951
LEGAL FORM : SHARES LIMITED company
REGISTERED CAPITAL : CNY 361,368,000
staff : 1,100
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 423,150,000 (JAN. 1 2012 TO
MAY 31, 2012)
EQUITIES :
CNY 1,202,460,000 (AS OF MAY 31, 2012)
WEBSITE : www.lomontio.cn
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.22 = USD
1
Adopted
abbreviations (as follows)
SC – Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND
& GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS &
HISTORY
***Note: SC’s address should be the heading one,
while SC’s parent company-Sichuan Lomon Group Co.,
Ltd. locates in the (23 Gao Peng Road, Hi-tech Zone, Chengdu, Sichuan 610041)
SC was established
as a limited liabilities company of PRC on February 21, 2001. However, SC
changed to present legal form, and was registered as shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 510000000173951 on September 25, 2005.
SC’s Organization Code Certificate No.: 72551331-3
SC’s Tax No.: 510683725513313
SC’s registered capital: CNY 361,368,000
SC’s paid-in capital: CNY 361,368,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Company Name |
Sichuan Lomon Titanium Limited |
Sichuan Lomon Titanium Industry
Co., Ltd. |
|
|
|
Registered Capital |
CNY 200,000,000 |
CNY 239,000,000 |
|
-- |
Registration No. |
5100001823429 |
510000000173951 |
|
|
Registered Capital |
CNY 239,000,000 |
CNY 286,800,000 |
|
|
Registered Capital |
CNY 286,800,000 |
CNY 361,368,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as of Nov., 2011) |
% of Shareholding |
|
Sichuan Lomon Group Co., Ltd. |
75.06 |
|
Sichuan Lomon Investment Co.,
Ltd. |
9.70 |
|
Daoming Business Management
Consultation Service (Shenzhen) Co., Ltd. |
5.00 |
|
Chengdu Xinxing Venture
Capital Co., Ltd. |
2.40 |
|
Sun Dagui |
4.00 |
|
Xi Linfen |
1.60 |
|
Li Jiaquan |
1.06 |
|
Fu Zuying |
1.00 |
|
Other shareholders |
0.18 |
Note:
SC has increased its registered capital to CNY 361,368,000, but its latest
shareholder information has not been lodged in local SAIC.
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Li
Jiaquan |
|
General Manager |
Zhou Xiaokui |
|
Director |
Li Weimin |
|
Fan Xianguo |
|
|
Xu Dabin |
|
|
Guo Yuanxi |
|
|
Fu Daiguo |
|
|
Supervisor |
Liu Jing |
|
Deng Guoqin |
|
|
Yan Yingang |
RECENT DEVELOPMENT
SC has passed OHSAS 18001 Occupation Health and Safety
Management System and ISO14001 Environment Protection Management System.
SHAREHOLDER CHART
& BACKGROUND
Name
(As of Nov., 2011) %
of Shareholding
Sichuan Lomon Group Co., Ltd. 75.06
Sichuan Lomon Investment Co.,
Ltd. 9.70
Daoming Business Management
Consultation Service (Shenzhen) Co., Ltd. 5.00
Chengdu Xinxing Venture Capital
Co., Ltd. 2.40
Sun Dagui 4.00
Xi Linfen 1.60
Li Jiaquan 1.06
Fu Zuying 1.00
Other shareholders 0.18
***Note: SC has increased its registered capital to CNY
361,368,000, but its latest shareholder information has not been lodged in
local SAIC.
Sichuan Lomon Corporation.
========================
Date of Registration: Jul. 3, 1998
Legal Representative: Li Jiaquan
Registration No.: 510683000004622
Registered Capital: CNY 62,065,000
Sichuan Lomon
Corporation is a large-sized enterprise that integrates phospho-chemistry,
titanium-chemisrty, bio-chemistry and V-Ti-Fe ore compresive utilization
business into one entity. The Corporation now possesses five major industrial
bases. Namely, they are: The sulphur-phosphor-Titanium chemical base with
Deyang, Sichuan as its center: The sulphur-phosphor chemical base with Kunming,
Yunnan as its center; The sulphur-phosphor chemical base with Xiangfan, Hubei
as its center; The bio- chemical industry base with Chengdu, Sichuan as its
center; and The V-Ti-Fe ore comprehensive development and utilization base with
Panzhihua, Sichuan as its center. It is also one of the Spark leading
enterprises of National Technology Innovation with “State-level enterprise
technical center". In Sichuan province, the Corporation is one of the
province’s key large-sized enterprises. The Corporation was awarded as
"One of Top 500 Chinese Key Private Enterprises", "One of 500
key Chinese Chemical Enterprises ", "Top 100 Key Enterprises in
Sichuan Province" for four years consecutively, and so on. Its products
"Rutile Titanium Dioxide pigment” and "S-abscisic acid" were
certified as “Products of Technology Innovation." by Sichuan Provincial
Government in 2007.
Add: No. 23 Gaopeng
Ave., Chengdu, Sichuan Province, 610041 PR China
Tel: 86 (0) 28- 85187340
Fax: 86 (0) 28- 85183703
Web: http://www.lomon.com
Sichuan Lomon Investment Co., Ltd.
=============================
Date of Registration: March 21, 2001
Registered Capital: CNY 40,000,000
Legal Representative: Li Jiaquan
Daoming Business Management
Consultation Service (Shenzhen) Co., Ltd.
========================================================
Date of Registration: November 18, 2005
Registration No.: 440307503243633
Legal Form: Wholly Foreign-Owned Enterprise
Legal Representative: Wu Shaoping
Registered Capital: HKD 23,000,000
Chengdu Xinxing Venture Capital Co.,
Ltd.
==================================
Date of Registration: November 10, 2000
Registered Capital: CNY 100,000,000
Legal Representative: Zhang Xueguo
MANAGEMENT
Li
Jiaquan, Legal
Representative and Chairman
--------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 51062219630906153X
Ø
Qualification:
University
Ø
Working
experience (s):
From 2001 to present, working in SC as legal
representative and chairman
Also working in Sichuan Lomon Corporation and Sichuan Lomon
Investment Co., Ltd. as legal representative
Zhou
Xiaokui , General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
ID# 31010419620921401X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
------------
Li Weimin
Fan Xianguo ID#
310104196404034014
Xu Dabin ID#
51010219380902187X
Guo Yuanxi ID#
510103195012033430
Fu Daiguo ID#
510103196410253417
Supervisors
---------------
Liu Jing ID#
510102196410211878
Deng Guoqin ID#
510622196107271512
Yan Yingang ID#
51292419740613955X
BUSINESS OPERATION
SC’s registered business scope includes manufacturing titanium
pigment; importing and exporting various goods and technology; manufacturing
fodder grade green copperas (I), sulphuric acid and phosphoric acid.
SC is
mainly engaged in manufacturing and selling titanium pigment.
Brand: LOMON
SC’s
products mainly include: R901, R966, and R986 rutile titanium dioxide for
general purposes use, top quality R108 and R109 rutile titanium dioxide for
special purposes, and water-soluble RS6013 and Rs6013 titanium dioxide white
liquid.
SC
sources its materials 80% from domestic market, and 20% from overseas market,
mainly European countries. SC sells 60% of its products in domestic market, and
40% to the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
=============
Sichuan Lomon Mining &
Metallurgy Co., Ltd.
*Major Customers:
==============
Yip’s Ink & Chemicals (Zhongshan)
Co., Ltd.
Standridge
Color Corp.
Quadra
Chemicals Ltd.
Sempertex
De Colombia S. A.
South
American Inks S.R.L.
Staff & Office:
--------------------------
SC is
known to have approx. 1,100
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
According
to http://www.lomon.com and other sources:
n
Sichuan Lomon Fusheng Technology Co.,
Ltd.
n
Sichuan Lomon Phosphorous Products Inc.
Etc.
SC is
known to invest in the following company:
n
Xuyong Lomon Minerals Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Agricultural Bank of China Sichuan Branch Mianzhu Sub-branch
AC#: 204101040006603
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of May 31, 2012 |
|
264,550 |
|
|
Notes receivable |
34,620 |
|
Accounts
receivable |
183,800 |
|
Advances to
suppliers |
132,970 |
|
Other receivable |
87,250 |
|
Inventory |
344,810 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
13,690 |
|
|
------------------ |
|
Current assets |
1,061,690 |
|
Long-term
investment |
183,170 |
|
Fixed assets |
376,780 |
|
Construction in
progress |
227,490 |
|
Intangible
assets |
74,320 |
|
Deferred income
tax assets |
8,450 |
|
Other
non-current assets |
750 |
|
|
------------------ |
|
Total assets |
1,932,650 |
|
|
============= |
|
Short-term loans |
220,000 |
|
Notes payable |
24,260 |
|
Accounts payable |
88,140 |
|
Wages payable |
13,360 |
|
Taxes payable |
5,010 |
|
Advances from
clients |
30,430 |
|
Other payable |
87,320 |
|
Other current
liabilities |
30 |
|
|
------------------ |
|
Current liabilities |
468,550 |
|
Non-current
liabilities |
261,640 |
|
|
------------------ |
|
Total
liabilities |
730,190 |
|
Equities |
1,202,460 |
|
|
------------------ |
|
Total
liabilities & equities |
1,932,650 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
Jan.
1, 2012 to May 31, 2012 |
|
Revenue |
423,150 |
|
Cost of sales |
283,510 |
|
Sales expense |
28,490 |
|
Management expense |
11,310 |
|
Finance expense |
10,120 |
|
Profit before
tax |
110,470 |
|
Less: profit tax |
27,610 |
|
82,860 |
Important Ratios
=============
|
|
As
of May 31, 2012 |
|
*Current ratio |
2.27 |
|
*Quick ratio |
1.53 |
|
*Liabilities
to assets |
0.38 |
|
*Net profit
margin (%) |
19.58 |
|
*Return on total
assets (%) |
4.29 |
|
*Inventory /
Revenue ×150 |
123 days |
|
*Accounts
receivable/ Revenue ×150 |
66 days |
|
*
Revenue/Total assets |
0.22 |
|
* Cost of
sales / Revenue |
0.67 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good
in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly
good.
l
SC’s cost of goods sold is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in
a fairly good level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC appears fairly
large.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
fairly large.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good
financial conditions. The fairly large amount of inventory and short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.53.14 |
|
UK Pound |
1 |
Rs.83.26 |
|
Euro |
1 |
Rs.71.93 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory capability
for payment of interest and principal sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated from
a composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.